Question: Hey, can you please solve this :) It will be dearly appreciated thank you!! Globex Corp. has a capital structure that consists of 40% debt

Hey, can you please solve this :) It will be dearly appreciated thank you!!

Hey, can you please solve this :) It will be dearly appreciated

thank you!! Globex Corp. has a capital structure that consists of 40%

Globex Corp. has a capital structure that consists of 40% debt and 60% equity. The firm's current beta is 1.15, but management wants to understand Globex Corp.'s market risk without the effect of leverage. If Globex Corp. has a 35% tax rate, what is its unlevered beta? 0.68 O 0.96 O 0.80 O 0.84 Now consider the case of another company: U.S. Robotics Inc. has a current capital structure of 30% debt and 70% equity. Its current before-tax cost of debt is 8%, and its tax rate is 35%. It currently has a levered beta of 1.15. The risk-free rate is 3.5%, and the risk premium on the market is 7.5%. U.S. Robotics Inc. is considering changing its capital structure to 60% debt and 40% equity. Increasing the firm's level of debt will cause its before-tax cost of debt to increase to 10% First, solve for U.S. Robotics Inc.'s unlevered beta Relever U.S. Robotics Inc.'s beta using the firm's new capital structure. Use U.S. Robotics Inc.'s levered beta under the new capital structure, to solve for its cost of equity under the new capital structure

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